Whales Making Last-ditch Efforts to Support SAND Price
The price of Sandbox (SAND) has remained stagnant at $0.30 over the last 7 days. However, a critical on-chain indicator reveals that holders are preparing for more bearish trading activity.
SAND’s price has consolidated around the $0.30 support level, which it last broke above in July 2021. Despite efforts from whale investors, the price of Sandbox is poised for another downward swing.
Whales Accumulating SAND Tokens to Prevent Price Reversal
Whale investors holding 1 million to 10 million SAND tokens have been actively trying to prevent the price from dropping below $0.30. Santiment data shows that these whales accumulated 5 million tokens in the first six days of September.
The whales held a cumulative balance of 261.6 million tokens as of August 31. However, as the price dipped below $0.31 on September 1, they began buying again, increasing their balance to 266.6 million SAND by September 6.
Monitoring changes in whales’ wallet balances provides insights into their current trading activity. When institutional holders increase their balances during a price slump, it indicates their attempt to apply bullish pressure to defend their positions.
Exchange Reserves Mounting After a Week of Price Stagnation
Sandbox holders are preparing for more selling in the coming days. CryptoQuant’s chart shows a significant increase in SAND deposits to exchange wallet addresses between September 3 and September 6.
During this period, investors moved 14 million SAND tokens into exchanges after almost a month of consistent withdrawals. An increase in exchange deposits suggests that holders are looking to sell or swap for other assets.
Notably, significant exchange inflows on August 10 preceded the recent SAND price dip. Over the last three days, SAND holders have deposited $4.2 million worth of tokens, indicating another potential sell-off that could intensify bearish pressure.
SAND Price Prediction: Potential Freefall to $0.10
If the SAND price drops below $0.30, the bears could firmly take control, considering that 98% of Sandbox investors are currently holding a loss. The Global In/Out of the Money data supports this prediction.
976 holders bought 20 million SAND at the minimum price of $0.29, and the next significant support level could be as low as $0.11 if they fail to keep the bears at bay. However, if negative sentiment in the altcoin markets subsides, the bulls could push the price towards $0.60.
On the other hand, 22.19 million addresses bought 380 million SAND tokens at the maximum price of $0.45. If they close their positions early, they could impede the rally. If the resistance level at $0.60 is breached, the Sandbox price rally could continue.
Hot Take: SandBox (SAND) in Jeopardy as Price Hits 2-Year Low: Will Investors HODL or Fold?
The recent price stagnation and bearish indicators surrounding Sandbox’s price raise concerns about the future of SAND. Will investors choose to hold onto their positions or fold in the face of potential losses? The coming days will reveal the fate of SAND and its investors.
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